December 6, 2021/Cordros Report
EQUITIES
Activities in the domestic equities market carried on last week’s bearish performances, closing lower on selloffs in WAPCO (-9.9%). Thus, the All-Share Index declined by 0.4% to 42,008.60 points. Consequently, the Month-to-Date loss increased to -2.9%, while the Year-to-Date gain moderated to +4.3%.
The total volume traded increased by 133.3% to 422.18 million units, valued at NGN4.47 billion, and exchanged in 5,059 deals. FBNH was the most traded stock by volume and value at 128.87 million units and NGN1.51 billion, respectively.
Sectoral performance was broadly negative, as declines in the Insurance (-1.8%), Banking (-1.4%), Industrial Goods (-0.6%), Consumer Goods (-0.3%), and Oil and Gas (-0.1%) indices reflected the overall market performance.
As measured by market breadth, market sentiment was negative (0.4x) as 9 tickers lost relative to 23 gainers. WAPCO (-9.9%) and LINKASSURE (-8.9%) recorded the most significant losses of the day, while ROYALEX (+9.4%) and CHIPLC (+9.1%) topped the gainers’ list.
CURRENCY
The naira depreciated by 0.1% to NGN415.00/USD at the I&E window.
MONEY MARKET & FIXED INCOME
The overnight lending rate was unchanged at 15.8% in the absence of any significant funding pressures on the system.
The NTB secondary market was quiet, albeit with a bullish bias, as the average yield pared by 1bp to 4.5%. Across the curve, the average yield stayed flat at the short and mid-segments but contracted at the long (-2bps) end following demand for the 352DTM (-19bps) bill. Elsewhere, the average yield was flat at 5.5% in the OMO segment.
Trading in the Treasury bond secondary market was bearish, as the average yield expanded by 9bps to 11.4%. Across the benchmark curve, the average yield contracted slightly at the short (-1bp) end due to demand for the APR-2023 (-2bps) bond but expanded at the mid (+34bps) and long (+2bps) segments as investors sold off the FEB-2028 (+41bps) and MAR-2035 (+11bps) bonds, respectively.
